<p>In this study, we examine differences in the net fiscal positions of migrants and native-born individuals across 15 EU countries between 2007 and 2018. To do so, we combine EU-SILC cross-sectional data on individual characteristics, income, and welfare benefits with OECD information on personal income taxes and social security contributions. Using OLS regressions, we find that an intra-EU migration background always has a statistically significant positive effect on the individual net fiscal position, whereas an extra-EU migration background has a positive effect when background characteristics are excluded but turns negative and significant once they are included. To explore the sources of these differences, we apply the Oaxaca-Blinder decomposition for the first time in this context. The findings reveal that, to varying degrees, age, education, and country effects are the largest contributors to the observed differential between the net fiscal positions of natives (more negative) and migrants (more positive). Remarkably, education has a significant positive effect on the net fiscal position of intra-EU migrants but is nearly irrelevant for extra-EU migrants. The findings offer valuable insights for policymakers seeking to design integration and fiscal policies that address the specific factors underlying fiscal disparities between migrants and natives in Europe.</p>

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Decomposing the net fiscal position of migrants in Europe

  • Giacomo Boffi,
  • Eduard Suari-Andreu,
  • Olaf van Vliet

摘要

In this study, we examine differences in the net fiscal positions of migrants and native-born individuals across 15 EU countries between 2007 and 2018. To do so, we combine EU-SILC cross-sectional data on individual characteristics, income, and welfare benefits with OECD information on personal income taxes and social security contributions. Using OLS regressions, we find that an intra-EU migration background always has a statistically significant positive effect on the individual net fiscal position, whereas an extra-EU migration background has a positive effect when background characteristics are excluded but turns negative and significant once they are included. To explore the sources of these differences, we apply the Oaxaca-Blinder decomposition for the first time in this context. The findings reveal that, to varying degrees, age, education, and country effects are the largest contributors to the observed differential between the net fiscal positions of natives (more negative) and migrants (more positive). Remarkably, education has a significant positive effect on the net fiscal position of intra-EU migrants but is nearly irrelevant for extra-EU migrants. The findings offer valuable insights for policymakers seeking to design integration and fiscal policies that address the specific factors underlying fiscal disparities between migrants and natives in Europe.